This section applies to—
any amount that is payable by HMRC to any person under or by virtue of an enactment, and
a relevant amount paid by a person to HMRC that is repaid by HMRC to that person or to another person.
But this section does not apply to—
an amount constituting a repayment of corporation tax,
an amount constituting a repayment of petroleum revenue tax, or
an amount of any description specified in an order made by the Treasury.
An amount to which this section applies carries interest at the repayment interest rate from the repayment interest start date until the date on which the payment or repayment is made.
In Schedule 54—
Parts 1 and 2 define the repayment interest start date, ...
Part 2A makes special provision as to the period for which an amount of VAT credit carries interest, and
Part 3 makes supplementary provision.
Subsection (3) applies even if the repayment interest start date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882.
Repayment interest is not payable on an amount payable in consequence of an order or judgment of a court having power to allow interest on the amount.
Repayment interest is not payable on repayment interest.
For the purposes of this section—
"relevant amount" means any sum that was paid in connection with any liability (including any purported or anticipated liability) to make a payment to HMRC under or by virtue of an enactment, and
any reference to the payment or repayment of an amount by HMRC includes a reference to its being set off against an amount owed to HMRC (and, accordingly, the reference to the date on which an amount is paid or repaid by HMRC includes a reference to the date from which the set-off takes effect).